The state-owned Investment Corporation of Bangladesh (ICB) will no longer receive any new debt-repayment funds from the government, according to a recent directive issued by the Ministry of Finance. The strict decision further complicates the financial recovery efforts of the loss-making institution, which has been struggling for years to stay afloat.

The ministry’s decision follows an extensive review of ICB’s financial condition, especially after the corporation reported a record loss of Tk 12,000 crore in the 2024–25 fiscal year. In December of last year, the government provided Tk 3,000 crore in support to ICB—two-thirds of which was used to settle outstanding debts, while the remainder was directed toward investment activities.

Viewing the government assistance as its “last lifeline,” ICB requested an additional Tk 13,000 crore in new funding. However, the finance ministry made it clear that no further financial support would be provided. Instead, ICB has been instructed to strengthen its market-based investments to generate its own income.

ICB Managing Director Niranjan Chandra Debnath told the media, “The finance ministry’s decision is clear—no more funds will be provided. After receiving Tk 3,000 crore earlier, we managed to settle dues with all lenders. But with new loan support discontinued, the road ahead has become even more challenging.”

He noted that the corporation is currently paying Tk 900 crore in interest every month—double what it used to pay earlier. Revenue generated from the stock market is insufficient to withstand this heavy financial pressure. Without government support, ICB will now rely solely on retained earnings, dividend income, and returns from older investments to manage its debt burden. Officials familiar with the matter believe that the chances of ICB receiving fresh capital from the government in the future are extremely slim.

ICB, however, claims that mismanagement by previous boards is primarily responsible for the current crisis. Poor investment decisions involving weak companies and unnecessary expenditures on subsidiaries reportedly pushed the institution into deep losses. The new board insists that such misuse of funds will not occur again.

One of ICB’s biggest challenges is the hefty volume of low-interest government loans it holds, coupled with high-interest borrowings from commercial banks. As a result, a significant portion of its earnings is consumed by interest repayments alone.

Experts warn that without new funds, the situation may deteriorate further. They suggest that ICB must now prioritize market-driven investment strategies, cut operational costs, and restructure its subsidiaries to survive.

“We will try to find a recovery path using our own capacity,” the MD added. “The government will observe how we progress. Only then will further decisions be taken.”